A new Regulation has been adopted (1370/2007) which sets out the conditions under which Member States should impose public service obligations on public transport operators and regulates compensation for provision of public services. It also requires that contracts to third parties to provide transport services should be awarded by means of a competitive tender (other than bus and tram services that are already covered by similar obligations under the public procurement and utilities contracts rules). Specific rules apply where local authorities choose to provide local transport services themselves or to an entity under their own control. The new Regulation also establishes a limit for the duration of public service transport contracts.
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